Appendix A to Part 187 - Methodology for Computation of Fees for Certification Services Performed Outside the United States
14:3.0.1.5.35.0.3.10.78 : Appendix A
Appendix A to Part 187 - Methodology for Computation of Fees for
Certification Services Performed Outside the United States
(a) Fixed fees and hourly rates have been derived using the
methodology described below to ensure full cost recovery for
certification actions or approvals provided by the FAA for persons
outside the United States.
(b) These rates are based on aviation safety inspector time
rather than calculating a separate rate for managerial or clerical
time because the inspector is the individual performing the actual
service. Charging for inspector time, while building in all costs
into the rate base, provides for efficient cost recovery and time
management.
(c) The hourly billing rate has been determined by using the
annual operations budget of the Flight Standards Service. The
budget is comprised of the following:
(1) Personnel compensation and benefits, budget code series 1100
(excluding codes 1151 and 1152 - overtime, Sunday and holiday pay),
1200, and 1300.
(2) Travel and transportation of persons, budget code series
2100 (excluding code 2100 - site visit travel).
(3) Transportation of things, budget code series 2200.
(4) Rental, communications, utilities, budget code series
2300.
(5) Printing and reproduction, budget code series 2400.
(6) Contractual services, budget code series 2500.
(7) Supplies and materials, budget code series 2600.
(8) Equipment, budget code series 3100.
(9) Lands and structures, budget code series 3200.
(10) Insurance claims and indemnities, budget code series
4200.
(d) In order to recover overhead costs attributable to the
budget, all costs other than direct inspector transportation and
subsistence, overtime, and Sunday/holiday costs, are assigned to
the number of inspector positions. An hourly cost per inspector is
developed by dividing the annual Flight Standards Operations
Budget, excluding the items enumerated above, by the number of
aviation safety inspections (OMB position series 1825) on board at
the beginning of the fiscal year, to determine the annual cost of
an aviation safety inspector. This annual cost of an aviation
safety inspector is divided by 2,087 hours, which is the annual
paid hours of a U.S. Federal Government employee. This result in
the hourly government paid cost of an aviation safety
inspector.
(e) To ensure that the hourly inspector cost represents a
billing rate that ensures full recovery of costs, the hourly cost
per inspector must be multiplied by an indirect work factor to
determine the hourly inspector billing rate. This is necessary for
the following reasons:
(1) Inspectors spend a significant amount of time in indirect
work to support their inspection activities, much of which cannot
be allocated to any one client.
(2) Not all 2,087 annual paid hours are available as work hours
because training, providing technical assistance, leave, and other
indirect work activities reduce the work time that may be directly
billed. Consequently, the hourly cost per inspector must be
adjusted upwards by an indirect work factor. The calculation of an
indirect work factor is discussed in paragraph (f) of this
appendix.
(f)(1) The indirect work factor is determined using the
following formula:
where: a = indirect work rate, and b = leave
usage (total leave hours divided by total hours available for work.
(2) The components of the formula are derived as follows:
(i) a = indirect work rate. Indirect work rate is take
from the Flight Standards Staffing Standard Order and is used to
project the amount of time an aviation safety inspector spends in
indirect activities, as opposed to certification and surveillance
work. The indirect work activities are:
(A) Development of master minimum equipment lists on Flight
Operations Evaluation Board.
(B) Development of aircraft training documents on Flight
Standardization Board.
(C) Development of Maintenance program documents on Maintenance
Review Board.
(D) Providing technical assistance.
(E) Assisting legal counsel.
(F) Evaluation of technical documents.
(G) Leave (all types).
(H) Training.
(I) Administrative time.
(J) Travel for indirect work.
(ii) b = leave usage (total leave hours divided by total
hours available for work). This is computed by using OMB
guidelines of 280 average annual leave hours and 1,800 average
annual hours available for work for computer manpower
requirements.
(g) The hourly inspector cost, when multiplied by the indirect
work factor, yields the hourly inspector billing rate and ensures
full cost recovery by incorporating the total amount of FAA paid
hours needed to produce one hour of direct billable inspector
time.
(h) Certifications and approvals for which there are fixed
times, such as airman tests, are determined by multiplying the time
used in the Flight Standards Staffing Standard or airman test
guidelines by the inspector hourly billing rate.
(i) Certifications and approvals for which there are no fixed
work rates, such as airman and repair station facilities (air
agencies), are billed at the hourly inspector billing rate.
(j) Actual transportation and subsistence expenses incurred in
certification or approval actions will be billed in addition to the
hourly inspector billing rate, where such expenses are
incurred.
(k) In no event will the fees exceed the actual costs of
providing certification or approval services.
(l) The methodology for computing user fees is published in this
Appendix. The User fee schedule is published in an FAA Advisory
Circular entitled “Flight Standards Service Schedule of Charges
Outside the United States.” A copy of this publication may be
obtained from: New Orders, Superintendent of Documents, P.O. Box
371954, Pittsburgh, PA 15250-7954.
(m) Fees will be reviewed every year, at the beginning of the
fiscal year, and adjusted either upward or downward in order to
reflect the current costs of performing tests, authorizations,
certifications, permits, or ratings.
(n) Notice of each change to a fee for a service described in
the user fee schedule will be published in the “Notices” section of
the Federal Register.
[Amdt. 187-5, 60 FR 19631, Apr. 19, 1995]